Initiatives for Addressing Material Issues 2—Reduction of Environmental Impact

Last updated : December 27, 2017

Basic Policy

Reducing CO2 emissions and otherwise lowering environmental impacts is recognized as an important issue needing to be addressed internationally in order to create a sustainable society. With expanding global businesses, increasing overseas profit, and expanding B2B2X businesses at the core of its business strategies, NTT Group is pursuing sustainable business development over the medium- to long-term. For this reason, NTT Group considers it absolutely essential to reduce its environmental impacts in order to grow further, and it is actively advancing initiatives to this end through cooperation with our various stakeholders.

NTT Group Environmental Statement

The NTT Group Environmental Statement compiles our vision for the future of the global environment we aim to build with our stakeholders, our environmental initiatives for building that future, and the company we aim to become through these efforts. The declaration begins with the words "People & Planet in Harmony." These words symbolize our goal of creating a future housing a sustainable society in which everyone and everything around the world is interconnected. To help realize such a future, we at NTT Group will push forward with our daily environmental activities to fully exercise our capabilities as forerunners in environmental contribution.
We have defined three characteristics of the vision for the future encapsulated in the words "People & Planet in Harmony." NTT Group will contribute to endowing the future with these characteristics through the provision of ICT services and cutting-edge technologies.

2030 Environmental Targets

NTT has established the 2030 Environmental Targets, a set of environmental targets to be accomplished by the fiscal year ending March 31, 2031, that is meant to guide us in realizing the future described in NTT Group Environmental Statement.
The 2030 Environmental Targets comprise goals related to the environmental issues prioritized by NTT Group, including those regarding climate change, energy, resources, and ecosystems. To help realize a low carbon future, we have defined targets for our contribution to reductions in society's CO2 emissions, the electrical efficiency of NTT Group's businesses, and the extent to which we help address climate change. For implementing closed loop recycling, we have set a target for the final disposal rate for waste. Furthermore, we have established targets for ecosystem preservation activities to guarantee that we are able to continue receiving the blessings of nature on into the future.

  • * Zero emissions: NTT Group defines zero emissions as a final disposal rate of 1% or less.

Overview of NTT Group's Environmental Impact

To reduce the environmental impact of its business activities to the greatest extent possible, NTT Group is taking steps to track and analyze what types of resources and energy it is using and what type of environmental impacts are occurring throughout its business activities.
In addition to the direct environmental impact of NTT Group's business activities, the Group also calculates and discloses information on greenhouse gas emissions from across the value chain (Scope 3 of the Greenhouse Gas Protocol), including such indirect emissions as those from ICT service provision.
In the fiscal year ended March 31, 2017, greenhouse gas emissions applicable under Scope 3 amounted to 17.16 million tons. Of these emissions, more than 85% came from category 1 (purchased goods and services), category 2 (capital goods), and category 11 (use of sold products). We are promoting the introduction of products with low environmental impact based on our Guidelines for Green Procurement and pursuing initiatives aimed at encouraging the use of energy-saving devices by our customers.

  • *Scope 1: Greenhouse gas emissions generated directly; Scope 2: Greenhouse gas emissions generated indirectly in conjunction with energy use; Scope 3: Greenhouse gas emissions generated indirectly over the whole value chain
  • **Categories: 15 subdivisions categorizing activities from portions of the value chain covered under Scope 3 (activities not conducted directly by a company) including activities related to products and services purchased by the company (upstream) and activities related to products and services sold by the company (downstream)

The NTT Group's Material Balance* (Fiscal Year Ended March 31, 2017)

  • *Relationship between volume of resources and energy required for business activities and associated waste and emissions production

Contributions to Reducing Society's CO2 Emissions

NTT Group's Contribution to Reducing Society's CO2 Emissions

ICT contributes to the reduction of the environmental impacts of our lives and society in various ways, including making our lives and work more efficient and providing alternatives for moving goods and people. For example, the digital distribution of books, music, movies, and other content cuts back on the energy consumed in transporting the books, CDs, DVDs, and other physical media that are normally used to distribute such content.
For the fiscal year ending March 31, 2031, NTT Group has established the target of contributing to a reduction in the CO2 emissions of society through the provision of its services and technologies that is at least 10 times greater than NTT Group's own emissions.
In the fiscal year ended March 31, 2017, the reduction in CO2 emissions from society achieved in this manner was 8.9 times the amount of emissions of NTT Group. The outcome was a result of increased use of services, such as video streaming services, in conjunction with the spread of smartphones and the development of high-speed, large-capacity networks as well as our ability to reduce the environmental impact to a degree that exceeded the amount of energy consumed by the Group in providing telecommunications services.
NTT Group will continue contributing to the reduction of society's environmental footprint in various fields by utilizing ICT.

Notes:
  • 1.The reduction in CO2 emissions from society is calculated by converting the energy conservation benefits of supplied ICT services into CO2. In converting energy conservation benefits into CO2, the Company referenced the calculation methods included in the Telecommunication Technology Committee's Methodology for the Assessment of the Environmental Impact of Information and Communication Technology Goods, Networks and Services (JT-L1410) and Life Cycle Assessment Society of Japan's Guideline for Information and Communication Technology (ICT) Eco-Efficiency Evaluation.
  • 2.Data collected from operations in Japan only

Reduction of the Group's CO2 Emissions through Energy-Saving Equipment

The reduction of CO2 and other greenhouse gas emissions, which are known causes of climate change, is an important issue for international society. In the ICT field, a primary area of business for NTT Group, the advancement of technologies brings concerns for the rises in electricity consumption that accompany the need for processing larger volumes of data and cooling massive servers. For this reason, ICT companies are increasingly being expected to make their operations more energy efficient in order to lower emissions.
NTT Group provides data center services and various other ICT services, and the use of electricity purchased to supply such services accounts for over 95% of the Group's CO2 emissions. We are therefore implementing energy-saving initiatives, realizing that these initiatives will also contribute to reductions in CO2 emissions.
NTT Group uses large amounts of electricity, with purchased electricity amounting to more than 8.0 billion kWh a year. Due to the rise in the price of electricity as a result of the start of the feed-in tariff scheme for renewable energy, NTT Group faces a large risk that it will be affected financially. Accordingly, reductions in CO2 emissions through the use of energy-saving equipment are also being pursued from a financial standpoint.
Measures conducted in the fiscal year ended March 31, 2017, included consolidating telecommunications equipment, making equipment more energy efficient, and introducing new technologies, such as optimal air-conditioning control systems and direct current (DC) power transmission systems. These measures for reducing CO2 emissions from electricity consumption were conducted through an investment of approximately ¥8.6 billion and contributed to a decrease of approximately 920.0 million kWh in electricity consumption. By advancing such efforts, we are contributing to the realization of a low carbon society while simultaneously mitigating financial risks for the Group.

Breakdown of CO2 Emissions from NTT Group

End of year / month 2013/3 2014/3 2015/3 2016/3 2017/3
CO2 from electricity (Millions of t-CO2) 4.17 4.61 4.84 4.67 4.38
(Breakdown) Electricity use (Billions kWh) 8.56 8.52 8.95 8.74 8.36
Emission coefficient (kg/kWh)* 0.488 0.541 0.540 0.534 0.524
CO2 from gas and fuel consumption (Millions of t-CO2) 0.164 0.164 0.159 0.139 0.134
CO2 from company vehicles (Millions of t-CO2) 0.059 0.055 0.047 0.042 0.038
CO2 from heating (Millions of t-CO2) 0.016 0.020 0.026 0.027 0.029
Total CO2 emissions (Millions of t-CO2) 4.41 4.85 5.07 4.87 4.58
  • *Weighted average of emission coefficients announced annually by each power company weighted according to the amount of electricity from each company used by NTT Group

Note: Data collected from operations in Japan only

  • *Excludes emissions of greenhouse gases other than CO2

Electricity Efficiency in Telecommunications Operations

Improvement of Electricity Efficiency

NTT Group has set the target for the fiscal year ending March 31, 2031, of increasing electricity efficiency at data centers and other facilities in telecommunications operations to at least 10 times higher than the levels seen in the fiscal year ended March 31, 2014. Electricity is essential to the continuity of telecommunications operations. Realizing more efficient use of electricity in these operations is thus both a means of mitigating business continuity risks and of preventing climate change.
In the fiscal year ended March 31, 2017, electricity efficiency in telecommunications operations was 2.7 times higher than in the fiscal year ended March 31, 2014. This feat was accomplished by introducing energy-saving equipment in accordance with the NTT Group Energy Efficiency Guidelines and improving network structure efficiency.

  • *Telecommunications operations contained within the scope of calculation for energy efficiency include the domestic operations of NTT East, NTT West, NTT Communications, NTT DOCOMO, and NTT DATA.

Energy Saving at Data Centers

NTT Communications offers data centers with power usage effectiveness (PUE)*1 of less than 1.2, and NTT COMWARE CORPORATION offers data centers with PUE of less than 1.1, which are at the world's highest level for energy efficiency. We are striving to enhance PUE for our other data centers as well by introducing five-star equipment with the highest level of energy efficiency in accordance with the NTT Group Energy Efficiency Guidelines. In addition, NTT FACILITIES has been developing higher-efficiency technologies for electrical power units and air-conditioning systems to reduce energy consumption at NTT Group communications buildings and data centers as well as central data center air-conditioning control systems for data centers. Furthermore, we began introducing high-voltage direct current (HVDC) rectifiers*2 at NTT Group communications buildings and data centers in the fiscal year ended March 31, 2015, to reduce energy consumption at these facilities. As of March 31, 2017, these rectifiers had been installed at approximately 400 facilities, contributing to improved energy efficiency and reduced costs for NTT Group as a whole. Going forward, NTT Group will promote the introduction of HVDC rectifiers in order to realize energy savings throughout the ICT field.
We are also operating some data centers using renewable energy and have installed a 5 kW solar power generation system at NTT East's Komagome Data Center. Solar power systems have also been set up at NTT East's Chiba Data Center; NTT West's Osaka Data Center; NTT Communications' Tokyo No. 2, No. 4, and No. 5 data centers; and the Takamatsu No. 2 Data Center in an effort to promote energy savings at these facilities.

  • *1Power usage effectiveness: PUE is calculated by dividing the total electricity consumption of a data center by the electricity consumption of the servers and other IT equipment it houses. It is a figure larger than 1, with higher efficiencies represented by values approaching 1.
  • *2HVDC rectifiers: Power supply systems that allow for reductions in the number of times AC electricity supplied from outside a data center is converted between AC and DC during the course of powering ICT equipment within the center, thereby improving the power conversion efficiency of the entire data center. The use of high-voltage power enables power to flow smoother, thereby allowing for power lines to be made thinner and contributing to savings in both energy and resources.

Promotion of HVDC Rectifier Introduction

Benefits of HVDC Rectifiers

HVDC power transmission systems boast lower costs than AC uninterruptable power supply systems in terms of total lifetime costs, including post-introduction operation. NTT Group developed low-cost HVDC rectifiers as part of a drive to promote the introduction of these systems, and sales of these rectifiers were commenced in October 2016.
Going forward, NTT Group will continue to reduce the price of peripheral equipment and other components of HVDC power transmission systems. At the same time, we will coordinate with vendors to propose bundles that package HVDC systems with ICT equipment to help customers leverage the full benefits of these systems. We will also promote the introduction of HVDC systems at the data centers outside of the Group and in the server rooms of other companies in order to contribute to energy savings in all areas of the ICT field.